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Spotify pledges $ 21 million to be paid to publishers and songwriters

Mar

19

2016

Spotify has reached an agreement with the National Music Publishers’ Association over alleged unpaid royalties in cases with unknown ownership data. The music streaming service is $ 21 million to pay to publishers and songwriters.

Of the 21 million dollars, converted approximately 18.5 million, 5 million bonus fund for publishers and writers who accept the agreement . This will likely prevent Spotify publishers will start from the NMPA lawsuits against his service.

Part of the agreement is to develop a method for publishers to easily identify songs and claim royalties when under their licenses. The deal also must ensure that there is a direct way for the owners of the rights to provide license Spotify to stream music.

The promised $ 21 million will be paid in full, even if not all music is claimed. The agreement is in fact recognized that any unclaimed amounts will be distributed to the participants of the agreement based on their market share. Publishers and songwriters get three months from April to demand compensation for their music.

Spotify has repeatedly been involved in lawsuits for non-payment of royalties. The most recent of these cases is ongoing and involves a claim of 150 million dollars for loss of income and damage done. It is possible that much of the injury prosecutors dropped the case because of the agreement. When the NMPA a deal with YouTube made were most concerned also with that in 2011.

Both Spotify as the NMPA claim to be happy with the deal. The NMPA sees it as the payment of money where its members are entitled to and more satisfied with the fact that it is easier in the future to claim the rights to music. Spotify has announced that it has always been the intention to pay authors and publishers.